Seoul: Stocks rebound from 2-week low on chip optimism, upbeat exports data

[SEOUL] South Korean shares rebounded from a 2-week low on Tuesday (Dec 21), buoyed by chip heavyweights on optimistic sector-wide outlook and as upbeat exports data suggested the economic recovery is on track. Both the Korean won and the benchmark bond yield fell.

The benchmark Kospi ended up 12.03 points or 0.41 per cent at 2,975.03, following a steep 1.81 per cent decline on Monday (Dec 20).

Chip giants Samsung Electronics and SK Hynix jumped 1.30 per cent and 3.32 per cent, respectively, after Micron Technology delivered stronger-than-expected quarterly results and forecast second-quarter sales and profits will also beat estimates with chip shortages easing in 2022.

Exports for the first 20 days of the month surged 20 per cent from the same period a year earlier, customs agency data showed, with sales of semiconductors and petroleum products surging 27.5 per cent and 88.8 per cent, respectively.

Gains, however, were capped due to cautious trading amid the global spread of the Omicron variant and related curbs. UK's prime minister said he would tighten virus curbs if needed, after the Netherlands began a fourth lockdown and as other European nations consider Christmas restrictions.

Foreigners were net buyers of 36.1 billion won (S$41.3 million) worth of shares on the main board.

The won ended at 1,192.9 per dollar on the onshore settlement platform, 0.18 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,192.7 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,192.2.

In money and debt markets, December futures on 3-year treasury bonds fell 0.02 point to 109.43.

The most liquid 3-year Korean treasury bond yield fell by 2.6 basis points to 1.715 per cent, while the benchmark 10-year yield fell by 1.3 basis points to 2.095 per cent.

REUTERS